Yusys Technologies(SZ:300674) Minsheng Securities·2024-08-28 16:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on expected benefits from the rapid development of the domestic information technology and AI sectors [2][4]. Core Insights - The company reported a revenue of 1.49 billion yuan for H1 2024, a year-on-year decline of 23.09%, while the net profit attributable to shareholders was 163 million yuan, down 1.03% year-on-year [2]. - In Q2 2024, the company achieved a revenue of 889 million yuan, a decrease of 22.28% year-on-year, but the net profit attributable to shareholders increased by 6.55% to 131 million yuan [2]. - The significant improvement in gross margin to 39% in Q2 2024, up 5 percentage points year-on-year, indicates a focus on project profitability despite revenue pressures [2]. - The company is actively pursuing opportunities in the non-performing loan business and has made strides in international markets, securing a major software project with a multinational bank [2]. Financial Performance Summary - For H1 2024, the system integration business saw a revenue drop of 42% to 221 million yuan, but the gross margin improved to 10.62% [2]. - The software development and services segment reported a revenue of 1.21 billion yuan, down 18.09%, with a gross margin recovery to 35.38% [2]. - The innovative operations business experienced a revenue decline of 26.52% to 52 million yuan, yet the gross margin rose to 92.33% [2]. - The projected net profits for 2024, 2025, and 2026 are 334 million, 392 million, and 452 million yuan respectively, with year-on-year growth rates of 2.5%, 17%, and 15% [2][5].